5 things you need to know before the stock market opens on Thursday

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Traders work on the trading floor of the New York Stock Exchange (NYSE) in New York City, U.S., January 25, 2023.

Andrew Kelly | Reuters

Here are the most important news items investors need to start their trading day:

1. The revenue march continues

We’re deeper into earnings season, so investors are getting more and more data to chew on every day. Tesla, IBM and Levi Strauss headlined Wednesday after bell earnings, while several more came on Thursday, including Comcast for the bell and Intel after the market closes. US stock markets, meanwhile, are having a mixed day. The Dow posted a win after falling more than 400 points earlier in the session. The S&P 500 and the Nasdaq fell slightly. Read live market updates here.

2. It’s GDP time

A person shops at a supermarket in New York City on December 14, 2022.

Yuki Iwamura | TBEN | Getty Images

Investors will also be stuck with the fourth-quarter gross domestic product report. GDP came in at 2.9% year-on-year, down from 3.2% in the third quarter. Economists polled by Dow Jones grew GDP by 2.8%. Market watchers and economists are looking for clues about what the economy will do this year. There is increasing talk of a recession, although there are some who believe the US will avoid such a slowdown in 2023. And if we see a recession this year, it could be light as consumers have remained resilient despite inflation and the labor market remains strong.

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3. A beautiful doll for Tesla

An employee checks Tesla Model Y electric vehicles loaded on a cargo trailer at the Tesla Inc. Gigafactory in Gruenheide, Germany, on Saturday, January 21, 2023. Tesla CEO Elon Musk downplayed how much of an impact his tweets have on the company’s stock price as he defended himself Friday at a trial in San Francisco federal court over his tweet from 2018 about taking the electric car manufacturer private. Photographer: Liesa Johannssen/Bloomberg via Getty Images

Bloomberg | Bloomberg | Getty Images

Tesla Shares rose after the electric vehicle leader released quarterly results that beat Wall Street expectations. Margins, meanwhile, fell to their lowest point in five quarters as prices were reduced and rising costs were dealt with. Still, the big story for Tesla was whether it could weather a slump in demand for its cars, especially as competitors bring more of their own EVs to market. Tesla slashed prices on several of its vehicles late last year and earlier this month in an effort to reduce demand. So far it seems it’s working. “So far in January we have seen the strongest orders since the start of the year than any time in our history. We are currently seeing orders at almost twice the rate of production,” said CEO Elon Musk.

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4. Smartphone shipments are slow

According to IDC, Apple maintained its position as the world’s largest smartphone maker through Q4 2022 shipments. However, iPhone shipments fell 14.9% year-over-year.

Stanislav Kogiku | SOPA Images | Rocket | Getty Images

According to IDC, a market research firm, smartphone shipments around the world fell during the holiday shopping quarter. Overall, companies shipped 18.3% fewer smartphones than in the same quarter of 2021, the largest drop ever. For the full year, companies shipped 1.21 billion smartphones, which is the lowest annual total since 2013. “We’ve never seen shipments fall in the holiday quarter compared to the previous quarter. However, weaker demand and high inventory caused before sellers drastically cut back on shipments,” said IDC research director Nabila Popal. Apple remained the largest smartphone producer, although shipments also declined.

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5. The CEO of Toyota steps aside

Akio Toyoda with new Toyota Supra

Paul Eisenstein | TBEN

Akio Toyoda, the grandson of Toyota’s founder, will step down as CEO of the company on April 1. He will become chairman, while the company’s chief branding, Koji Sato, will take over as CEO. Toyoda spent much of his most recent years leading the auto giant to defend its decision not to fully embrace electric vehicles, saying it won’t be easy to transition the car market to all-electric so quickly. cars as some of Toyota’s rivals expect. While announcing his resignation, Toyoda reflected on his tenure in blunt terms. “Looking back, these 13 years have been a period of fighting day after day for survival, and that’s my honest feeling,” he said.

– TBEN’s Alex Harring, Patti Domm, Lora Kolodny, Arjun Kharpal and Ruxandra Iordache contributed to this report.

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